TradeCap Partners recently facilitated the closing of a $350,000 Purchase Order Finance Facility for an importer of Paper Products based in Minnesota. The introduction was made to TradeCap through a factoring partner that had worked with the Company for close to a decade.

The Company’s customer base included several distributors and essential retailers. Sales had been steadily increasing because of higher than normal consumer demand for household paper products during the nationwide shutdown. The Company seized the opportunity to grow market share and supply a new account, a major grocer with locations across the country. Purchase orders were issued for deliveries to multiple distribution centers on the East and West coast but the Client needed additional cash flow to secure the inventory. The Company needed a solution fast.

TradeCap expedited due diligence with the help of the factor and closed quickly. The facility was structured to pay for 100% of the cost of the inventory, freight and tariffs. Given products were being sourced from China, the flexibility of incorporating additional availability to cover tariffs was critical.

The supplier was paid for product while inventory was in-transit, freight and tariff payments were made to the forwarder and deliveries were made on time to the new customer. The Client is now working to secure additional capacity with the supplier to support recurring inventory flows and meet heightened demand.